Which of the following is a disadvantage of international expansion?
A)An FI can lower its net regulatory burden and therefore increase its potential net profitability by finding countries that have reduced activity restrictions and reserve requirements.
B)An FI can generate additional returns from new product innovations if it can sell such services internationally rather than just domestically.
C)Monitoring and information collection cost often are higher in international markets.
D)International expansion allows an FI to search for cheaper and more available sources of funds.

Question

Quizplus · Accepted Answer

Monitoring and information collection cost can be significantly higher in international markets due to differences in legal, regulatory, and cultural environments. This can increase operational costs and decrease the profitability of international expansion. A, B, and D are potential advantages of international expansion.

Which of the Following Is a Disadvantage of International Expansion